Apple to Raise Product Prices as AI Boom Drives Up Memory Chip Costs

Apple plans to increase the prices of some of its products after a sharp rise in memory chip costs driven by growing demand for artificial intelligence technologies, the company’s chief executive Tim Cook has said.

Cook told the Wall Street Journal that price increases had become unavoidable because the current situation in the memory chip market was no longer sustainable for manufacturers.

He did not specify when the price adjustments would take effect or which products would be affected. It also remains unclear whether the expected iPhone 18 lineup, due to be launched in September, will be among the products receiving higher prices.

Memory chips are critical components used in smartphones, computers and other electronic devices. Demand for these chips has increased significantly in recent months as technology companies expand their artificial intelligence capabilities.

“We’re doing our best to mitigate the huge increases that are being passed to us, and we’ve been trying to shield our customers from the increases, but the situation has become unsustainable,” Cook told the newspaper.

He said there was limited supply at a time when consumer demand for devices remained strong, adding that memory manufacturers were passing on substantial cost increases to customers.

Cook, who is expected to step down in September after 15 years as Apple’s chief executive and be succeeded by John Ternus, said the company needed memory pricing and supply conditions to return to more reasonable levels for consumer products.

The cost of RAM, one of the most common computer components, has more than doubled since October 2025. Besides strong AI demand, the conflict in Iran has disrupted supplies of helium, a gas used in semiconductor manufacturing, further increasing production costs.

Research firm Omdia expects the average selling price of smartphones worldwide to rise by about 20 percent in 2026. Omdia analyst Chiew Le Xuan told the BBC that Apple’s upcoming devices could cost up to US$150 more than the iPhone 17 models because of hardware upgrades needed to support new AI features.

He said many smartphone manufacturers have already raised prices, reduced promotions or lowered specifications to protect their profit margins from rising production costs. According to the analyst, higher prices represent a longer-term shift rather than a temporary increase.

Other major technology companies have also reported pressure within the semiconductor industry. Taiwan Semiconductor Manufacturing Company (TSMC), which produces advanced chips for Apple, Nvidia and AMD, recently said it could not rule out future price increases because of inflation.

Samsung has previously warned that shortages in memory chip supplies could make electronic devices more expensive. Sony increased the price of PlayStation 5 consoles earlier this year, while Nintendo later announced plans to raise the price of its Switch 2 from September because of changing market conditions.

Despite the cost pressures, Apple has continued to record strong sales. Sales of Apple devices increased by 17 percent during the first three months of 2026 compared with the same period last year, supported by strong demand in China. Earlier this year, the company also removed the entry-level Mac Mini option, increasing its starting price by about US$200.